Strategic Investment Positions Company with Approximately $19M in Cash

ENGLEWOOD, CO / ACCESSWIRE / November 30, 2018 / Aytu BioScience, Inc. (NASDAQ: AYTU), a specialty pharmaceutical company focused on global commercialization of novel products addressing significant medical needs, today announced the closing of a strategic investment in the company by Armistice Capital ("Armistice"). Armistice has invested $5 million in the form of a three-year senior secured note.

This investment by Armistice has been made in conjunction with the company's licensing of Tuzistra® XR and a complementary antitussive pending FDA approval and is intended to further support the growth of the company's commercial portfolio.

Josh Disbrow, Aytu BioScience's Chief Executive Officer, commented "We thank Armistice Capital and founder Steve Boyd for this commitment to Aytu's growth in providing this financing. Armistice has an outstanding reputation as a healthcare investor, and we look forward to working with Steve and the Armistice team. We're excited about Aytu's growth prospects and the current strength of the company given our product portfolio, cash position, and sequential revenue growth we've demonstrated over the last three quarters."

Armistice Capital is a global, long/short, value-oriented and event-driven hedge fund focused primarily on the health care and consumer sectors with approximately $800 million in assets under management. Armistice invests predominantly in equities and seeks to maximize the opportunity set of investment candidates allowing for the selection of unique, concentrated bets to generate uncorrelated investment returns. Steven Boyd, Chief Investment Officer, founded Armistice Capital in 2012. Steven was the first analyst at Senator Investment Group in 2008, joining the firm with its founders from York Capital. Armistice was the winner of 2017 US Hedge Fund Performance Awards by HFM for long/short equity, long/short equity long-term performance (5 years) under $1billion, and single manager long-term performance under $1 billion.

The $5 million senior secured note has a three-year term, carries an 8% coupon, is secured by the revenue streams of Tuzistra XR and the complementary antitussive, and may be repaid by the company at any time 30 days following closing without penalty. Details of the secured note can be found on Form 8-K that will be filed with the U.S. Securities Exchange Commission on or around December 3, 2018.

About Aytu BioScience, Inc.

Aytu BioScience is a commercial-stage specialty pharmaceutical company focused on global commercialization of novel products addressing significant medical needs. The company currently markets Natesto®, the only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or "Low T"). Aytu also has exclusive U.S. and Canadian rights to ZolpiMist™, an FDA-approved, commercial-stage prescription sleep aid indicated for the short-term treatment of insomnia characterized by difficulties with sleep initiation. Aytu recently acquired exclusive U.S. commercial rights to Tuzistra® XR, the only FDA-approved 12-hour codeine-based antitussive syrup. Tuzistra XR is a prescription antitussive consisting of codeine polistirex and chlorpheniramine polistirex in an extended-release oral suspension. Additionally, Aytu is developing MiOXSYS®, a novel, rapid semen analysis system with the potential to become a standard of care for the diagnosis and management of male infertility caused by oxidative stress. MiOXSYS is commercialized outside of the U.S. where it is a CE Marked, Health Canada cleared, Australian TGA approved, Mexican COFEPRAS approved product, and Aytu is planning U.S.-based clinical trials in pursuit of 510k de novo medical device clearance by the FDA. Aytu's strategy is to continue building its portfolio of revenue-generating products, leveraging its focused commercial team and expertise to build leading brands within large therapeutic markets. For more information visit

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. All statements other than statements of historical facts contained in this presentation, are forward-looking statements. Forward looking statements are generally written in the future tense and/or are preceded by words such as ''may,'' ''will,'' ''should,'' ''forecast,'' ''could,'' ''expect,'' ''suggest,'' ''believe,'' ''estimate,'' ''continue,'' ''anticipate,'' ''intend,'' ''plan,'' "prospects" or similar words, or the negatives of such terms or other variations on such terms or comparable terminology. These statements are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others: risks relating to gaining market acceptance of our products, obtaining reimbursement by third-party payors, the potential future commercialization of our product candidates, the anticipated start dates, durations and completion dates, as well as the potential future results, of our ongoing and future clinical trials, the anticipated designs of our future clinical trials, anticipated future regulatory submissions and events, our anticipated future cash position and future events under our current and potential future collaboration. We also refer you to the risks described in ''Risk Factors'' in Part I, Item 1A of the Company's Annual Report on Form 10-K and in the other reports and documents we file with the Securities and Exchange Commission from time to time.

Contact for Investors:

James Carbonara
Hayden IR

SOURCE: Aytu BioScience, Inc.

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